NEXI SPA (NEXI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:NEXI - IT0005366767 - Common Stock
3.65 EUR
-0.06 (-1.64%)
We assign a fundamental rating of 5 out of 10 to NEXI. NEXI was compared to 59 industry peers in the Financial Services industry. NEXI has an average financial health and profitability rating. NEXI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- NEXI had positive earnings in the past year.
- NEXI had a positive operating cash flow in the past year.
- Of the past 5 years NEXI 4 years were profitable.
- Each year in the past 5 years NEXI had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.68%, NEXI perfoms like the industry average, outperforming 40.68% of the companies in the same industry.
- NEXI's Return On Equity of 1.58% is in line compared to the rest of the industry. NEXI outperforms 44.07% of its industry peers.
- NEXI has a Return On Invested Capital (1.39%) which is in line with its industry peers.
- NEXI had an Average Return On Invested Capital over the past 3 years of 1.03%. This is significantly below the industry average of 10.02%.
- The 3 year average ROIC (1.03%) for NEXI is below the current ROIC(1.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 1.58% | ||
| ROIC | 1.39% |
ROA(3y)-0.86%
ROA(5y)-0.08%
ROE(3y)-2.09%
ROE(5y)0.46%
ROIC(3y)1.03%
ROIC(5y)1.15%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.85%, NEXI is in line with its industry, outperforming 40.68% of the companies in the same industry.
- NEXI's Profit Margin has declined in the last couple of years.
- NEXI has a Operating Margin of 7.08%. This is comparable to the rest of the industry: NEXI outperforms 40.68% of its industry peers.
- In the last couple of years the Operating Margin of NEXI has grown nicely.
- Looking at the Gross Margin, with a value of 57.47%, NEXI is in line with its industry, outperforming 59.32% of the companies in the same industry.
- In the last couple of years the Gross Margin of NEXI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | 2.85% | ||
| GM | 57.47% |
OM growth 3Y63.82%
OM growth 5Y17.09%
PM growth 3Y28.31%
PM growth 5Y-21%
GM growth 3Y1.91%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEXI is destroying value.
- NEXI has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NEXI has more shares outstanding
- Compared to 1 year ago, NEXI has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.16, we must say that NEXI is in the distress zone and has some risk of bankruptcy.
- NEXI has a Altman-Z score of 1.16. This is comparable to the rest of the industry: NEXI outperforms 42.37% of its industry peers.
- NEXI has a debt to FCF ratio of 10.65. This is a negative value and a sign of low solvency as NEXI would need 10.65 years to pay back of all of its debts.
- NEXI's Debt to FCF ratio of 10.65 is in line compared to the rest of the industry. NEXI outperforms 47.46% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that NEXI is somewhat dependend on debt financing.
- NEXI's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. NEXI outperforms 47.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.65 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.2
WACC7.06%
2.3 Liquidity
- A Current Ratio of 1.68 indicates that NEXI should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.68, NEXI is doing good in the industry, outperforming 66.10% of the companies in the same industry.
- NEXI has a Quick Ratio of 1.68. This is a normal value and indicates that NEXI is financially healthy and should not expect problems in meeting its short term obligations.
- NEXI's Quick ratio of 1.68 is fine compared to the rest of the industry. NEXI outperforms 71.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 119.23% over the past year.
- The Earnings Per Share has been decreasing by -7.37% on average over the past years.
- The Revenue has been growing slightly by 6.48% in the past year.
- Measured over the past years, NEXI shows a very strong growth in Revenue. The Revenue has been growing by 32.10% on average per year.
EPS 1Y (TTM)119.23%
EPS 3Y55.36%
EPS 5Y-7.37%
EPS Q2Q%441%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y28.05%
Revenue growth 5Y32.1%
Sales Q2Q%7.96%
3.2 Future
- The Earnings Per Share is expected to grow by 13.43% on average over the next years. This is quite good.
- NEXI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y12.36%
EPS Next 2Y9.7%
EPS Next 3Y9.66%
EPS Next 5Y13.43%
Revenue Next Year2.79%
Revenue Next 2Y2.46%
Revenue Next 3Y2.92%
Revenue Next 5Y4.34%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.33, which indicates a rather expensive current valuation of NEXI.
- NEXI's Price/Earnings ratio is in line with the industry average.
- NEXI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 5.11, the valuation of NEXI can be described as very cheap.
- Based on the Price/Forward Earnings ratio, NEXI is valued cheaper than 91.53% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NEXI to the average of the S&P500 Index (25.98), we can say NEXI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 5.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NEXI is valued a bit cheaper than the industry average as 77.97% of the companies are valued more expensively.
- 83.05% of the companies in the same industry are more expensive than NEXI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.65 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEXI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y9.7%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
- NEXI has a Yearly Dividend Yield of 6.45%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.97, NEXI pays a better dividend. On top of this NEXI pays more dividend than 93.22% of the companies listed in the same industry.
- NEXI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- NEXI pays out 187.58% of its income as dividend. This is not a sustainable payout ratio.
DP187.58%
EPS Next 2Y9.7%
EPS Next 3Y9.66%
NEXI SPA / NEXI.MI FAQ
What is the fundamental rating for NEXI stock?
ChartMill assigns a fundamental rating of 5 / 10 to NEXI.MI.
What is the valuation status for NEXI stock?
ChartMill assigns a valuation rating of 5 / 10 to NEXI SPA (NEXI.MI). This can be considered as Fairly Valued.
How profitable is NEXI SPA (NEXI.MI) stock?
NEXI SPA (NEXI.MI) has a profitability rating of 5 / 10.
What is the valuation of NEXI SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEXI SPA (NEXI.MI) is 24.33 and the Price/Book (PB) ratio is 0.4.
How sustainable is the dividend of NEXI SPA (NEXI.MI) stock?
The dividend rating of NEXI SPA (NEXI.MI) is 5 / 10 and the dividend payout ratio is 187.58%.